The first long-awaited Bitcoin ETF goes live today. Although investors have stated that the futures ETF does not fully meet the expectations compared to a spot ETF that directly invests in Bitcoin, today is a first in Bitcoin history.
Proshares’ Bitcoin futures ETF will be the first cryptocurrency ETF to begin trading in the US.
While there is consensus that the ETF is a very positive development in the long run, there is disagreement about short-term fluctuations.
While some analysts think that the launch of the Bitcoin futures ETF will not have a negative impact on the market, some analysts fear that the “sellers” will create a dumping effect on Bitcoin.
The host of CNBC’s Mad Money program, Jim Cramer, stated that he expected a correction after the ETF was traded, and that he sold some of his digital assets.
While it is unclear whether the investors who bought the prospect will sell this news, it is worth remembering that this event is a very important development for Bitcoin.
Many more investors trading in traditional markets will meet Bitcoin and be able to engage in Bitcoin trading in a safer space.
Some of the explanations about Bitcoin movements after the ETF are as follows;
Dan Morehead, Pantera Capital CEO: “Can you remind me the day before the Bitcoin ETF starts? I might want to get some money off the table,” he said, adding that he was concerned that the news would be sold.
Permission.io CEO Charlie Silver said it was “highly likely” that the SEC’s ETF approval would trigger sales. However, Silver added that there will be no change for long-term investors.
Bloomberg senior commodity strategist Mike McGlone disagrees with the others. Saying that the approval of the Bitcoin futures ETF is unlikely to trigger sales, the analyst said, “If it’s the way to a real ETF, it’s a very small step.”
Cross Tower business manager Chad Steinglass is also skeptical of Morehead’s approach.
“There is some data to support that the ‘buy the rumor, sell the news’ theory works in the crypto space. But I don’t think this is something to be trusted. There is also a lot of data showing that the right trade is to buy rumors and news.
In Ethereum, prices rose with the much anticipated London hard fork and then continued to rise higher. When Paypal added support for crypto in the fall of 2020, it added fuel to an already existing rally.
For me, the main factor in determining whether an event will be a ‘sell the news’ event is all about how and why traders are positioned.”
*Not Investment Advice.